Search - connection

Analysis First, I would note that in connection with Exhibit A-3 above, Mr. ...

His only significant connection with Canada was his wife’s continuing residence in Hamilton and special reasons existed to justify her remaining in Canada. ...

Referring to a letter from his accountant dated May 8, 1981, and addressed to the respondent, counsel for the respondent questioned the appellant's credibility in this connection. ...

Paragraphs 8(1)(a), 8(3)(a.1) and 18(1)(p)(iii) provide: 8(1) In computing a taxpayer's income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto: (a) a single amount in respect of all offices and employments of the taxpayer, equal to the lesser of $500 and 3% of the aggregate of (i) his incomes for the year from all offices and employments (other than the office of a corporation director) before making any deduction under this section, and (ii) all amounts included in computing his income for the year by virtue of paragraphs 56(1)(m) and (o). 8(3) In computing a taxpayer's income for a taxation year, no amount is deductible under paragraph (1)(a) (a.1) if the taxpayer was in the year an incorporated employee and a specified shareholder (within the meaning assigned by paragraph 125(9)(c)) of a corporation that has deducted an amount described in subparagraph 18(1)(p)(iii) in computing its income for its taxation year ending in the year. 18(1) In computing the income of a taxpayer from a business or property no deduction shall be made in respect of (p) an outlay or expense to the extent that it was made or incurred by a corporation in a taxation year for the purpose of gaining or producing income from a personal services business (within the meaning assigned by paragraph 125(6)(g.1)), other than (iii) any amount expended by the corporation in connection with the selling of property or the negotiating of contracts by the corporation if the amount would have been deductible in computing the income of an incor- porated employee for a taxation year from an office or employment if the amount had been expended by the incorporated employee under a contract of employment that required him to pay the amount that would, if the income of the corporation were from a business other than a personal services business, be deductible in computing its income. ...

They live in Zimbabwe and it appears that their only particular relationship to Canada arises out of their connection with the appellant. ...

McAllister was maintained in connection with a business carried on with a reasonable expectation of profit. ...

It is legal fees incurred in connection with these proceedings, relating to the injunction and contempt of court, which appellant claims to be able to deduct in computing its income. ...

Interestingly, the Department's implicit statement in Interpretation Bulletin IT-99R3 that a retiring allowance is not employment income runs contrary to certain statements made by it elsewhere. [38] It should be noted that where in connection with a wrongful dismissal action the employer, as part of the settlement, reimburses the employee for his legal expenses, the Department takes the position that income tax should be withheld at source on the reimbursement, as well as on the retiring allowance. ...

Law — Cases- Analysis 4.01 Law The main provision of the Income Tax Act that is involved in this case is paragraph 8(1)(f), which reads as follows: 8. (1) In computing a taxpayer's income for a taxation year from an office or employment, there may be deducted such of the following amounts as are wholly applicable to that source or such part of the following amounts as may reasonably be regarded as applicable thereto: (f) where the taxpayer was employed in the year in connection with the selling of property or negotiating of contracts for his employer, and (i) under the contract of employment was required to pay his own expenses, (ii) was ordinarily required to carry on the duties of his employment away from his employer's place of business, (iii) was remunerated in whole or part by commissions or other similar amounts fixed by reference to the volume of the sales made or the contracts negotiated, and (iv) was not in receipt of an allowance for travelling expenses in respect of the taxation year that was, by virtue of subparagraph 6(1)(b)(v), not included in computing his income, amounts expended by him in the year for the purpose of earning the income from the employment (not exceeding the commissions or other similar amounts fixed as aforesaid received by him in the year) to the extent that such amounts were not (v) outlays, losses or replacements of capital or payments on account of capital, except as described in paragraph (j) or (vi) outlays or expenses that would, by virtue of paragraph 18(1)(l), not be deductible in computing the taxpayer's income for the year if the employment were a business carried on by him; 4.02 Cases The cases cited by counsel for the respondent are the following: 1. ...

In general, the Department will not challenge the reasonableness of salaries and bonuses paid to the principal shareholders-managers of a corporation when (a) the general practice of the corporation is to distribute the profits of the company to its shareholders-managers in the form of bonuses or additional Salaries; or (b) the company has adopted a policy of declaring bonuses to the shareholders to remunerate them for the profits the company has earned that are, in fact, attributable to the special know-how, connections, or entrepreneurial skills of the shareholders. ...